The trouble of beleaguered Rupee Cooperative Bank seems unending, as again on August 30th the regulator RBI gave it a fresh lease of life for three months. Its proposed merger with Maharashtra State Cooperative Bank is yet to see the light of the day.
In a release RBI noted “The Direction on Rupee Cooperative Bank which was extended up to August 31, 2019 shall continue to apply to the bank for a further period of three months from September 01, 2019 to November 30, 2019 vide Directive dated August 28, 2019 subject to review.”
“All other terms and conditions of the Directives under reference shall remain unchanged”, the mail read.
Pune based Rupee Co-operative Bank was placed under directions from close of business on February 22, 2013. The validity of the directions was extended from time to time, the last being Directive dated May 27, 2019 and was valid up to August 31, 2019.
A copy of the directive dated August 28, 2019 notifying the above extension is displayed at the bank’s premises for the perusal of public, RBI has ordered.
“The aforesaid extension or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank”, RBI clarifies.
Earlier, as reported in these columns, the Rupee Bank Depositors Forum had demanded Maharashtra government to complete the process of merger of bank with MSC Bank before the state assembly polls which are likely to take place in October.
It is to be noted that MSC Bank has already carried out the due diligence. The top official sources of MSC Bank said, “So, far we have not received the approval from the apex bank RBI to takeover Rupee Bank and the matter still is under consideration”.
“We are requesting state government to complete the process of merger of ailing Rupee Bank with MSC Bank. We have met CM Devendra Fadnavis on several occasions”, said Shrirang Parsapatki, who is heading the Forum.
Meanwhile, a press release from the beleaguered UCB says that the Statutory Audit for the FY 2018-19 was recently completed and there were no adverse remarks. The BOA( Board of Administrators) has also requested RBI to carry out Annual Inspection of the Bank at the earliest.
The Bank has paid Rs 332 crores to Rs 83,777 needy depositors under hardship scheme of RBI. The Bank is having deposit of Rs 1,297 crores,” the release said.
More than 6 lakh depositors are associated with Rupee Bank.